I disagree with a good bit of this.
Agree that the blue bloods will still be the blue bloods, but, due to the narrowing of the gap, the 2nd tier teams will be able to hold onto coaches & actually build their program. In the 1st 5-10 years of lowered scholarships, you may not see a ton of difference except closer games, but over the course of years 10-20, you're going to see some 2nd tier programs that are able to keep assistants & HCs easier, rise & begin competing.
Other than Clemson, college football has been stuck in a rut with the same power houses for 40 years. Yes, Tennessee & Nebraska have fallen, but no one has really risen except for Clemson & why is that? Mostly because they've had coaching continuity for 10 plus years & have been able to build. As you saw with MSU & Mullen, Ole Miss & Tuberville, Vandy & James Franklin, etc, etc, etc, there is currently no path for a 2nd tier team to rise, but by lowering scholarships, you create a more navigable path along with closer games.
There is absolutely nothing bad about lowering scholarships in college football. It'll only help the game. There is no downside.